Corpus Christi Growth Could Cost Companies Money In The Temporary Housing Market And Business Owners Beware
|Flood Waters deep into apartments in Corpus Christi during a|
rain event in 2018.
With the Corpus Christi area economy growing and new people coming in every week, there is one problem that is lurking around everywhere you look. It’s a problem known throughout the ages of home and property rentals as “Property Management Companies” and with Corpus Christi growing, it is those companies that are creating the biggest headaches for corporations looking to relocate employees to the area on a temporary basis.
Nearly every apartment complex has one and they often are staffed by people who barely know the rules of property leasing and landlord tenant laws. They are focused on one thing and one thing only—fill up units and make money for themselves.
The way that they do that is solidly charge what seem to be reasonably priced application fees, administration fees and background check fees. You could reasonably assume that the apartment complex was charging a fair fee for those non-refundable fees, but are they?
Not so says the National Apartment Association. They claim that standard screening tools cost property management companies only about $100 per month—the normal cost for one application. But for management companies the goal is to find the renter with the least risk and deny the others in order to make a profit.
For many large corporations, moving people around is a necessity and they often have contracts worked out with larger management companies who provide them the best rates, similar to large hotel booking websites. But it is for smaller corporations that require the same demands, that the crooked property management game becomes a problem.
A small company could come into hundreds of dollars in losses per unit if the company or its employee gets denied for any number of reasons. The only company making money is the management company.
“They all claim that they love corporate rentals but they really do not,” says Chase Del Bosque of Corporate Relo America. “They want local, long term, stable renters with an individual to blame if something goes wrong.”
Del Bosque said that the industry is overwhelmed with slogans and marketing tactics that promote community atmospheres, loyalty and fun. But deep down what you see is not always what you get.
In Corpus Christi, there are some major offenders when it comes to corporate relocation gimmicks and they are not always who you think. Experts say that newer properties and those that change management often are usually the prime offenders.
For instance, The Arbors on Saratoga is a property that was recently used by Houston based ClearWorth Capital to enter the south side Corpus Christi housing market boom—a wise choice by any estimate. But the management company NOI Property Management, also Houston based, which manages the property is focused solely upon collect fees and get them in or move them along.
Small businesses are often more so required to prove themselves worthy because they pose a greater risk for companies like NOI Property Management.
In even smaller communities like Manhattan Apartments and Wooldridge Creek Apartments, which are smaller properties and suffer from an obvious failure to re-invest, the incompetencies of property managers becomes even more evident.
At places like Manhattan Apartments, you can obviously see that they do not care about upkeep as the fairly new complex is already showing signs of wear and tear. Managers there insist on having every occupant plus the corporation being held liable in the event something happens and an eviction suite is needed.
“If business operates that way and opened every employee up to liability for the company then what point is there in being a corporation,” says Investment Manager Jeffery Reynolds who either owns or co-owns 30+ residential properties around Texas. “These management companies are foolish and frankly fraudulent in their practices.”
Reynolds wishes that the state would step in and further regulate the property management industry.
“Something needs to be done about them and their games,” he says.
But as Corpus Christi grows, what can corporations do to avoid high fees, extravagant deposits and complicated schemes? Experts say think outside the box and look at older properties in good neighborhoods, think local and avoid national corporate interests and never, ever, ever rent from a company that block manages properties.
Experts also say that relocation managers should avoid the high prices of home rentals that often require less paperwork but more upfront money. They say that is a sure fire way to end up on the bad end of a financial deal.
“The best thing to do is be wise,” says Del Bosque. “Just flat out leave if you can’t get to decision maker or feel like they are either making it too easy or too complicated.”
His best suggestion? Just be more careful of them than they are of you and your corporate relocation could be beneficial for both you and the investors.